19980226_1.docx

MINUTES OF DECISION MEETING
February 26, 1998 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Ralph Nelson and Marsha H. Smith and staff members Scott Woodbury, Cheri Copsey, Ron Law, Bev Barker, Stephanie Miller, David Scott, Tonya Clark, Lynn Anderson  and Myrna Walters. Also in attendance were Larry Ripley and Ric Gale of Idaho Power Company and Conley Ward, Attorney at Law.
Commission President Dennis Hansen called the meeting to order at 1:30 p.m.
Items from the Published February 26, 1998 Decision Meeting Agenda were discussed and acted upon as set out in these minutes.
First item on the agenda was review of the Minutes of the February 19, 1998 Decision Meeting. The Minutes had previously been reviewed by the Commissioners,  were subsequently  corrected and were ready for consideration.
Commissioner Hansen made a motion to approve said minutes; the motion passed unanimously.
Items 2, 3, 4 and 6 on the Consent Agenda were then considered as a group. Item No. 5 was moved to Matters in Progress.
Commissioner Hansen asked if there were any questions or comments regarding these matters?
Commissioner Smith had a question on Item 3 - Idaho Power’s Application for Authority to Discontinue its Commercial Lighting Energy Efficiency Program, Case No. IPC-E-98-1.
Asked if Idaho Power Company was participating in NEEA?
Response was that they were.
Motion was then made to approve the Consent Agenda; motion passed unanimously.
5. Cheri C. Copsey’s February 24, 1998 Decision Memorandum re: Idaho Power Company’s and FMC Corporation’s Application for Approval of a Special Contract for Service to FMC Corporation and a Revised Schedule 28 FMC Tariff for Approval of Revisions to the Power Cost Adjustment of Idaho Power Company as a Result of the New FMC Contract, Case No. IPC-E-97-13 (Issue of Solutia, Inc.’s Monsanto’s and P4's Petition for Leave to Intervene).
Cheri Copsey reviewed the decision memorandum.  
Commissioner Hansen called for any questions or comments from the commissioners?
Commissioner Nelson said he had looked at this carefully and the Commission has always had a pretty liberal policy regarding interventions but in this case he can understand that Solutia is interested but don’t see that they have an interest in the outcome that would cause him to make them a party. In this instance he would move to not approve the intervention request.  
Commissioner Hansen said a motion is before the Commission to not approve the intervention request. Asked for any other discussion or comment?
Commissioner Smith said she saw this a little differently. Realizes the Commission has a policy to liberally grant interventions and with the relevant issues of the case, would probably grant the petition for intervention with a clarification that reopening the Monsanto contract is not an issue in this case and is not relevant but the issue of the direct access to wholesale power is an issue in this case and that is probably where they have an interest.
Commissioner Nelson renewed his motion to deny the intervention. Commissioners Hansen and Nelson voted for the motion; Commissioner Smith voted no. Intervention is denied - two votes to one.
7. Joe Cusick’s February 17, 1998 Decision Memorandum re: Proposal to Increase Idaho Universal Service Fund (IUSF) Surcharge Rates. (Held from 2-19-98 Decision Meeting at the request of the Commissioners)
In Joe Cusick’s absence, Terri Carlock reviewed the matter held from the last decision meeting.  
Commissioner Hansen asked for any questions or comments from the commissioners. Said he understood the proposals now. Was glad the matter was held for a week. Asked if anyone cared to make a motion on a proposed rate.
Commissioner Nelson said he would move that the rate which was 12 cents for residential and 24 for business lines and 1.8 mills for toll minutes be adopted.  
Commissioner Smith said she just had a comment - that the Commission is going to look at this whole thing again after the next annual review and will get the administrator’s report in August so would caution that her vote in favor of the motion at this time doesn’t necessarily mean she will be similarly inclined in September,  but for this period of time in order to retain the solvency of the fund, would support the motion.
Commissioner Hansen called for a vote on the motion; motion carried unanimously.
Cheri Copsey asked about the effective date.
Commissioner Smith replied the administrator said she could live with an April 1 effective date.
**April 1, 1998 will be the effective rate.
8. Cheri Copsey’s February 20, 1998 Decision Memorandum re: Application of LDM Systems, Inc. for a Certificate of Public Convenience and Necessity, Case No. LDM-T-97-1.
Cheri Copsey reviewed the matter. Initially staff had opposed granting the certificate based on experience staff had with complaints for the long distance service, related to slamming.  Comments have now been filed by LDM and it appears that staff  recommendation has changed at this time so that a certificate can be issued so long as there are three conditions. Those conditions have been agreed to by LDM. She listed the conditions.
Commissioner Hansen called for questions or comments by the commissioners. Said he noticed all of these different restrictions on past performance and had reservations in granting this certificate because  right off you would have concerns.
Commissioner Smith said she was inclined not to grant the certificate, given the magnitude of slamming problem. Commission should have a zero tolerance level or as low as reasonable. If she read correctly the reply comments of the Applicant, it appears they made some changes in marketing policies in July 1997. If this is the case and there has been a change in marketing policies they should be able to demonstrate a marked difference in the rate of slamming complaints.   She would not approve this until the applicant shows that the changes made have actually resulted in the desired result of a reduction in slamming. Don’t think we should unleash them in the local market until they have the marketing  process down so it will not result in local service problems. Would hold this application.  
Commissioner Nelson said he would support such a motion.
Cheri Copsey asked for clarification, is the thrust of the motion to deny the application and ask company to refile or just to hold the application?
Commissioner Smith said she didn’t think it needed to be refiled.
Motion to hold the application carried unanimously.
9. Don Howell’s February 23, 1998 Decision Memorandum re: Idaho Power’s Motion Opposing the Intervention of Solutia in Case No. IPC-E-98-2.
In Don’s absence, Scott Woodbury reviewed the matter. Said Solutia is continuing its request for intervention and wants to amend the petition to include Monsanto Company and combined joint venture P4 Productions, LLC.  
Commissioner Hansen asked for questions or comments by the commissioners. Said his feelings are they could have a potential impact on all of the customers in Idaho as we look into unbundling and look at distribution and generation and can see other people outside of the service area of a particular company being affected as a result of these proceedings.
Commissioner Nelson said he agreed. The fact that the issues are broader in this case and compensation of cost will be made and Solutia is affected by one of these utilities, he would move to grant intervention.
Commissioner Smith said it seemed  to her that if they wanted to be in on any of these cases, it should be UP&L. See this in a narrow scope. Would vote no for intervention.
Vote was taken: Commissioners Hansen and Nelson voted yes; Commissioner Smith voted no.
Decision Meeting was then adjourned.
Dated at Boise, Idaho, this 6th day of March, 1998.
Myrna J. Walters
Commission Secretary